A new report by Microsoft and Trinity College Dublin is projecting that the adoption of artificial intelligence (AI) could add €250 billion to Ireland’s economy, as measured by GDP, within 10 years.
The AI Economy in Ireland 2025 report found that AI adoption is expected to increase Ireland’s Gross National Income (GNI) by at least €130 billion by 2035.
According to the study, AI adoption in Ireland has surged to 91%, nearly doubling from 49% in 2024, a significant leap that now puts Ireland ahead of many of its EU counterparts after previously trailing behind.
The report highlights the persistence of a “shadow AI culture,” where employees independently adopt AI tools without the organisation’s oversight.
80% of organisations report employees using free AI tools without built-in enterprise security controls and 61% of managers acknowledge AI usage in workplaces where it is officially restricted.
The study found that SMEs adopt AI at 30% lower rates than multinational organisations, with just 10% of SMEs having an AI strategy, compared to 50% of multinationals.
Regulatory barriers to AI adoption were more pronounced in Northern Ireland, with 80% of organisations citing challenges compared to 50% in Ireland.
Just 15% of public sector organisations use AI in most decision-making roles.
“A key issue appears to be the lack of formal strategy and governance frameworks, creating gaps in secure and responsible AI implementation,” the report found.
Despite these hurdles, 63% of organisations feel that the government is supportive of AI adoption.
“With a collaborative approach across government, academia, and industry, Ireland can play a leading role in the era of AI, driving sustainable economic growth across sectors and setting the stage for global competitiveness as AI adoption continues to surge,” said Catherine Doyle, General Manager, Microsoft Ireland.
Dr Ashish Kumar Jha, Associate Professor of Business Analytics at Trinity Business School and co-author of the report said Ireland is at a pivotal moment in its AI adoption journey.
“This year’s research underscores both the progress made and the work still to be done,” he said.
“AI adoption in Ireland has nearly doubled in the past year, but the challenge now is moving beyond experimentation to full-scale, strategic implementation,” he added.
The research was conducted by the Trinity Centre for Digital Business and Analytics (CDBA) at Trinity Business School, Trinity College Dublin.
This report is based on a comprehensive study of AI adoption trends in Ireland, conducted by Trinity CDBA in collaboration with market research firm 3GEM.
The research surveyed 300 senior leaders across diverse industries.
Article Source – AI expected to add €250 billion to Ireland’s economy by 2035 – report – RTE